MRP refers to the basic calculations used to determine components required from end item requirements. It also refers to a broader information system that uses the dependence relationship to plan and control manufacturing operations.
“Materials Requirement Planning (MRP) is a technique for determining the quantity and timing for the acquisition of dependent demand items needed to satisfy master production schedule requirements.”
Objectives of MRP
The inputs to the MRP system are: (1) A master production schedule, (2) An inventory status file and (3) Bill of materials (BOM). Using these three information sources, the MRP processing logic (computer programme) provides three kinds of information (output) for each product component: order release requirements, order rescheduling and planned orders.
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